Maximizing Your Tax Benefits: The American Opportunity Tax Credit

💼The American Opportunity Tax Credit is a valuable tax benefit for eligible students.

🎓To qualify for the credit, you must be a degree or credential-seeking student attending school at least half-time.

💸The credit is worth up to $2,500 per year for the first four years of education.

💰The American Opportunity Tax Credit is partially refundable, meaning you may receive a refund even if your tax bill is zero.

📝To claim the credit, you need to fill out Form 8863 and meet income eligibility requirements.

Who is eligible for the American Opportunity Tax Credit?

—Eligible individuals include degree or credential-seeking students attending school at least half-time and who have not already completed a four-year degree.

How much is the American Opportunity Tax Credit worth?

—The credit is worth up to $2,500 per student per year for the first four years of education.

Is the American Opportunity Tax Credit refundable?

—Yes, 40% of the credit is refundable, meaning you may receive a refund even if your tax bill is zero.

How do I claim the American Opportunity Tax Credit?

—To claim the credit, you need to fill out Form 8863 and include it with your tax return.

Are there income limits for the American Opportunity Tax Credit?

—Yes, there are income limits. The credit phases out for higher-income earners.

00:00The American Opportunity Tax Credit can benefit eligible students by reducing their tax bill.

02:00To qualify for the credit, you must be a degree or credential-seeking student attending school at least half-time.

03:43The credit is worth up to $2,500 per year for the first four years of education.

05:25The American Opportunity Tax Credit is partially refundable, allowing you to receive a refund even if your tax bill is zero.

07:51To claim the credit, you need to fill out Form 8863 and meet income eligibility requirements.